As we approach hurricane season, Louisiana remains in an insurance crisis.”All of a sudden, we heard bam. The middle window flew out, hit a fence 10 feet away,” Ashley Nelson said.More than four years after Hurricane Ida, Nelson is still rebuilding. She won’t forget the damage from 2021.”I went downstairs. I was like, ‘Why is it raining on my head?’ I realized water was coming down,” Nelson said.Nelson said her Uptown New Orleans home dates back to 1885.”My insurance company canceled me immediately,” Nelson said. “So, I had to go with Citizens. There’s been a lot of talk about lowering home insurance — we have yet to see that. I tried to get another insurer, and it was just astronomical. I was getting $7,000 jumps.”WDSU Investigates uncovered records showing Louisiana Citizens Property Insurance Corp. changed how its cancellation refunds work.Some say the policy is not clear.According to Citizens, a homeowner buys a one-year policy, has coverage during hurricane season, then cancels mid-term without qualifying for an exception. Citizens could keep 80% or more of the premium — possibly leaving the homeowner without coverage and out thousands of dollars.”I am not going to call it theft, but if there’s another word for it, I would think that would be it,” state Rep. Kyle Green said.Green did not know about the change until WDSU showed him the records.”Why? Just why? What is the basis? Explain to me what is the benefit of this policy,” Green said. “You are seeing more stories of people deciding to pack up and move to other places because living in south Louisiana has become unaffordable.”WDSU Investigates has been pushing for answers from Citizens since December of last year.Citizens would not agree to go on camera. The company issued the following statement:”The change was implemented to reduce adverse selection. This adverse selection can lead to unbalanced costs for Louisiana Citizens and ultimately higher premiums for all policyholders that remain in the risk pool.””The largest expense incurred by Louisiana Citizens Property Insurance Corp. is reinsurance protection. That expense can be $300 million or more per year. Our premium to global reinsurers is based on an average TIV (total insured value) during storm season. Therefore, those who have policies in force during peak hurricane season and then cancel after a storm passes or prior to the end of their term with a full pro rata refund of premium, ultimately place more expense load/rate on those who remain as policyholders.”As a side note, Louisiana Citizens was an outlier without the endorsement. All other residual markets that operate in the Gulf and purchase reinsurance have earned premium endorsements. Texas, Mississippi, and Alabama all keep 100% of the premium (fully earned) to deter adverse selection. Florida Citizens retains at least 80% of the premium, along with Louisiana Citizens.”Please remember that the earned premium endorsement does not apply to the following:If the insured replaces their policy with similar coverage from another company.If the property is sold.If the property is a total loss.If the property has had continuous wind coverage for no fewer than three years at LCPIC.If the mortgage on the property is paid in full during the term.”The fourth bullet, addressing those who have been with LCPIC for three or more years, eliminates policies. Also, anyone with a mortgage on their home is required to have hazard coverage. That eliminates a tremendous number of policies as they are theoretically eliminated from the endorsement, as they cannot simply cancel their coverage unless their mortgage is paid in full. If that pay-off happens, see bullet 5 above, which removes them from the endorsement. 77,186 of the 119,305 (65%) are eliminated by having either 3 or more years of wind coverage, or by mortgage companies. This is prior to any of the remaining bullet points above.”In November 2024, chairman Tim Temple, along with the Louisiana Citizens Board of Directors, approved the endorsement by a unanimous vote. It was then submitted and approved by the LDI.Both Green and state Rep. Aimee Freeman graded insurance affordability a D.Freeman described the issues as “frustrating.”Freeman said there needs to be a bigger investment in the state’s fortified roof program.”Right now, if you do a fortified roof, it’s kind of like a dart board. It’s like, where will the darts land?” Freeman said.Freeman said legislation is in the works to bring change.She said about 20 parishes in the state are considered coastal parishes. A fortified roof could be required for new builds in those parishes.So WDSU Investigates went to the man who has the power to bring change to insurance in Louisiana: Commissioner Tim Temple.”I think it makes sense to have a conversation and probably adopt a fortified standard on some of the coastal parishes,” Temple said.Louisiana is certainly among the highest average annual premiums in the country.”I think it is still a crisis for sure,” Temple said.Temple said part of the crisis is multiple hurricanes dating back to 2020.Temple noted 800,000 claims, $24 billion paid out, and an estimated 36 companies left the state.Currently, Temple said just 20 companies are writing the bulk of new policies in Louisiana.But Temple said there is light at the end of the tunnel. According to Temple, for the first time in about five years, Louisiana is starting to see a rate decrease.Temple said to look into wind mitigation surveys for your home and invest in a fortified roof. It’s crucial to shop around.”There are probably viewers saying I live in an area where there is one or two companies that want to write business — they don’t have that luxury,” Temple said. “That is what we are trying to change.”A big push: bringing more companies and policies, cutting the number of homeowners being dropped.WDSU Investigates asked if there was an estimate on how many companies have committed to come to Louisiana in 2026 or in the near future. “In the last five days, I have had conversations with two companies that filed an application to become certified. I had a second company contact informing me they were going to be filing an application. That’s two examples. That doesn’t mean there’s dozens of companies,” Temple said.WDSU Investigates dug into data for Louisiana Citizens, a last resort for insurance in Louisiana. According to Temple, an estimated 120,000 policies are in Louisiana.Policy counts:(High)September 2008 174,302(Low) February 2021 34,377(after 12 insolvencies) June 2023 146,197(Current) February 2026 118,923WDSU asked Temple about Citizens not going on camera.”I will have a conversation with executive management and see what their hesitation is. I want Citizens to be transparent,” Temple said.WDSU asked about the concern over Citizens and that 80% issue.”The people that are upset are the ones that are gaming the system,” Temple said. “I think they didn’t set the system up properly. It was not intended to be a money grab. It was intended to dissuade people gaming the system. I am going to have some meetings in the near future with the agent associations. That will be a topic that is understood on their behalf.”WDSU Investigates uncovered that after Hurricane Katrina, Citizens went into a financial disaster. For the past 20 years, a portion of your insurance premiums has gone to pay bonds borrowed after Katrina.Citizens released the following information:”On 4/11/2006, $978 million was originally borrowed for the 2005 deficit. We have incurred a total of $1.375 billion for the 2005 storm year.”Once paid in June 2026, the total cost of the bonds will be $1.6 billion. This total includes all fees related to the bonds (refinancing, bank fees, cost of issuance, principal, and interest).”We ended the EA collections nearly 14 months early on 4/1/2025.””Ideally, you never want to have a scenario where they go insolvent again,” Temple said. “I think it’s very well positioned. I am not going to say there’s no scenario that could not occur where that would happen.”While we brace for another hurricane season, Temple said change will happen.Louisiana Department of Insurance issued the following information:”Wind mitigation surveys vary in cost, but usually a few hundred dollars. We recommend policyholders who are interested contact a wind mitigation surveyor, or multiple surveyors, for quotes. Savings vary greatly depending on survey results and what information your insurer already has on file about your property. It is also helpful to contact your insurance agent and ask if they can provide guidance as to how much a wind mitigation survey might save you.”Temple said for now, the fortified roof program is the long-term solution.WDSU Investigates asked what changes Louisiana will see over the next 12 months.”Double the number of fortified roofs we have funding for — another 3,000,” Temple said. “Let’s see if we can hit 20,000 in the next 12 months.”Back at Nelson’s home, she said her time with Citizens will come to an end eventually.”I will get there. It’s been a journey,” Nelson said.
As we approach hurricane season, Louisiana remains in an insurance crisis.
“All of a sudden, we heard bam. The middle window flew out, hit a fence 10 feet away,” Ashley Nelson said.
More than four years after Hurricane Ida, Nelson is still rebuilding. She won’t forget the damage from 2021.
“I went downstairs. I was like, ‘Why is it raining on my head?’ I realized water was coming down,” Nelson said.
Nelson said her Uptown New Orleans home dates back to 1885.
“My insurance company canceled me immediately,” Nelson said. “So, I had to go with Citizens. There’s been a lot of talk about lowering home insurance — we have yet to see that. I tried to get another insurer, and it was just astronomical. I was getting $7,000 jumps.”
WDSU Investigates uncovered records showing Louisiana Citizens Property Insurance Corp. changed how its cancellation refunds work.
Some say the policy is not clear.
According to Citizens, a homeowner buys a one-year policy, has coverage during hurricane season, then cancels mid-term without qualifying for an exception. Citizens could keep 80% or more of the premium — possibly leaving the homeowner without coverage and out thousands of dollars.
“I am not going to call it theft, but if there’s another word for it, I would think that would be it,” state Rep. Kyle Green said.
Green did not know about the change until WDSU showed him the records.
“Why? Just why? What is the basis? Explain to me what is the benefit of this policy,” Green said. “You are seeing more stories of people deciding to pack up and move to other places because living in south Louisiana has become unaffordable.”
WDSU Investigates has been pushing for answers from Citizens since December of last year.
Citizens would not agree to go on camera. The company issued the following statement:
“The change was implemented to reduce adverse selection. This adverse selection can lead to unbalanced costs for Louisiana Citizens and ultimately higher premiums for all policyholders that remain in the risk pool.”
“The largest expense incurred by Louisiana Citizens Property Insurance Corp. is reinsurance protection. That expense can be $300 million or more per year. Our premium to global reinsurers is based on an average TIV (total insured value) during storm season. Therefore, those who have policies in force during peak hurricane season and then cancel after a storm passes or prior to the end of their term with a full pro rata refund of premium, ultimately place more expense load/rate on those who remain as policyholders.
“As a side note, Louisiana Citizens was an outlier without the endorsement. All other residual markets that operate in the Gulf and purchase reinsurance have earned premium endorsements. Texas, Mississippi, and Alabama all keep 100% of the premium (fully earned) to deter adverse selection. Florida Citizens retains at least 80% of the premium, along with Louisiana Citizens.
“Please remember that the earned premium endorsement does not apply to the following:
- If the insured replaces their policy with similar coverage from another company.
- If the property is sold.
- If the property is a total loss.
- If the property has had continuous wind coverage for no fewer than three years at LCPIC.
- If the mortgage on the property is paid in full during the term.
“The fourth bullet, addressing those who have been with LCPIC for three or more years, eliminates policies. Also, anyone with a mortgage on their home is required to have hazard coverage. That eliminates a tremendous number of policies as they are theoretically eliminated from the endorsement, as they cannot simply cancel their coverage unless their mortgage is paid in full. If that pay-off happens, see bullet 5 above, which removes them from the endorsement. 77,186 of the 119,305 (65%) are eliminated by having either 3 or more years of wind coverage, or by mortgage companies. This is prior to any of the remaining bullet points above.”
In November 2024, chairman Tim Temple, along with the Louisiana Citizens Board of Directors, approved the endorsement by a unanimous vote. It was then submitted and approved by the LDI.
Both Green and state Rep. Aimee Freeman graded insurance affordability a D.
Freeman described the issues as “frustrating.”
Freeman said there needs to be a bigger investment in the state’s fortified roof program.
“Right now, if you do a fortified roof, it’s kind of like a dart board. It’s like, where will the darts land?” Freeman said.
Freeman said legislation is in the works to bring change.
She said about 20 parishes in the state are considered coastal parishes. A fortified roof could be required for new builds in those parishes.
So WDSU Investigates went to the man who has the power to bring change to insurance in Louisiana: Commissioner Tim Temple.
“I think it makes sense to have a conversation and probably adopt a fortified standard on some of the coastal parishes,” Temple said.
Louisiana is certainly among the highest average annual premiums in the country.
“I think it is still a crisis for sure,” Temple said.
Temple said part of the crisis is multiple hurricanes dating back to 2020.
Temple noted 800,000 claims, $24 billion paid out, and an estimated 36 companies left the state.
Currently, Temple said just 20 companies are writing the bulk of new policies in Louisiana.
But Temple said there is light at the end of the tunnel. According to Temple, for the first time in about five years, Louisiana is starting to see a rate decrease.
Temple said to look into wind mitigation surveys for your home and invest in a fortified roof. It’s crucial to shop around.
“There are probably viewers saying I live in an area where there is one or two companies that want to write business — they don’t have that luxury,” Temple said. “That is what we are trying to change.”
A big push: bringing more companies and policies, cutting the number of homeowners being dropped.
WDSU Investigates asked if there was an estimate on how many companies have committed to come to Louisiana in 2026 or in the near future.
“In the last five days, I have had conversations with two companies that filed an application to become certified. I had a second company contact informing me they were going to be filing an application. That’s two examples. That doesn’t mean there’s dozens of companies,” Temple said.
WDSU Investigates dug into data for Louisiana Citizens, a last resort for insurance in Louisiana. According to Temple, an estimated 120,000 policies are in Louisiana.
Policy counts:
- (High)September 2008 174,302
- (Low) February 2021 34,377
- (after 12 insolvencies) June 2023 146,197
- (Current) February 2026 118,923
WDSU asked Temple about Citizens not going on camera.
“I will have a conversation with executive management and see what their hesitation is. I want Citizens to be transparent,” Temple said.
WDSU asked about the concern over Citizens and that 80% issue.
“The people that are upset are the ones that are gaming the system,” Temple said. “I think they didn’t set the system up properly. It was not intended to be a money grab. It was intended to dissuade people gaming the system. I am going to have some meetings in the near future with the agent associations. That will be a topic that is understood on their behalf.”
WDSU Investigates uncovered that after Hurricane Katrina, Citizens went into a financial disaster. For the past 20 years, a portion of your insurance premiums has gone to pay bonds borrowed after Katrina.
Citizens released the following information:
“On 4/11/2006, $978 million was originally borrowed for the 2005 deficit. We have incurred a total of $1.375 billion for the 2005 storm year.
“Once paid in June 2026, the total cost of the bonds will be $1.6 billion. This total includes all fees related to the bonds (refinancing, bank fees, cost of issuance, principal, and interest).
“We ended the EA collections nearly 14 months early on 4/1/2025.”
“Ideally, you never want to have a scenario where they go insolvent again,” Temple said. “I think it’s very well positioned. I am not going to say there’s no scenario that could not occur where that would happen.”
While we brace for another hurricane season, Temple said change will happen.
Louisiana Department of Insurance issued the following information:
“Wind mitigation surveys vary in cost, but usually a few hundred dollars. We recommend policyholders who are interested contact a wind mitigation surveyor, or multiple surveyors, for quotes. Savings vary greatly depending on survey results and what information your insurer already has on file about your property. It is also helpful to contact your insurance agent and ask if they can provide guidance as to how much a wind mitigation survey might save you.”
Temple said for now, the fortified roof program is the long-term solution.
WDSU Investigates asked what changes Louisiana will see over the next 12 months.
“Double the number of fortified roofs we have funding for — another 3,000,” Temple said. “Let’s see if we can hit 20,000 in the next 12 months.”
Back at Nelson’s home, she said her time with Citizens will come to an end eventually.
“I will get there. It’s been a journey,” Nelson said.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.